5.1. - 5.5. SR 09-09-2002 - Laserfiche WebLink

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municipal budget is approved. However, if LGA is reduced in 2003 after the budget is approved, then the city will need to look at other cuts in expenditures and adding reserves to the revenues in order to balance the budget. The proposal before the City Council for the general fund tax levy is the same as what was discussed at the August 26 worksession. This proposal is to levy to the maximum amount allowed per the state levy limit law. The General Fund, Street Replacement, Library, and Surface Water levies all fall under the levy limit law. The tax levy resolution that is in this packet also covers spedal levies including an amount for the public safety building. Overall, the total tax levy amount is just under $6 million and this is slightly less than the total proposed at the August 26 worksession. Almost all of the decrease is in the public safety bonds due to the low interest rate which the city received. The equipment certificate tax levy amount is the same, although the number of years for the certificates has gone from four to three due to a reduction in the total expenditures amount. In a surprising development, the city has been advised by the county that the net tax capadty is projected to increase by 14.44% and the market value by 16%. This means that based on the almost $6 million tax levy that the city tax rate would go from 43.6 to 44.657. This is a 2.4% increase in the city tax rate. Due to levy limits being placed on the dty and the substantial increase in the city net tax capacity, it appears that adding the public safety bond to the tax roll in 2003 will have a minimal impact on the dty tax rate. Following a discussion on the 2003 budget and tax levy, the City Council is requested to take the following action: · Motion approving a resolution authorizing the 2003 proposed maximum property tax levy · Motion approving a resolution establishing the 2003 tax levy for the Economic Development Authority · Motion approving a resolution establishing the 2003 tax levy for the Housing and Redevelopment Authority · Motion approving the amended debt levies as presented by the Finance Department · Motion calling for a special City Council meeting on December 2, 2002 at 6 p.m. to hold the city truth in taxation public hearing on the tax levy and budget with a continuation date of December 9, 2002 at 6:30 p.m. (The alternative is to hold the public hearing on 12/9/02 with a continuation date of 12/16/02.) s:\council\pat\taxlevy9-9.doc